Chapter 717: Losing money

In the grand hall of Century City's WMA headquarters, the atmosphere buzzed with anticipation as media reporters gathered around a temporary podium. Christopher Nolan and Ari Emmanuel, two prominent figures in Hollywood, sat poised at tables, ready to ink their respective contracts.

Meanwhile, in a lounge tucked away diagonally, Martin and Thomas observed the scene. Martin's gaze shifted from Nolan, who was finalizing his deal with WMA, to Thomas standing beside him. Thomas absentmindedly raised a hand to touch his bald forehead, reflecting on his journey from obscurity to success.

"Seems like CAA couldn't hold onto Nolan," Martin remarked suddenly, prompting Thomas to nod in agreement, albeit with a hint of surprise.

The saga between CAA and Nolan served as a poignant lesson for Thomas. He understood that in this industry, loyalty was fleeting, and agents were merely facilitators for their clients' ambitions. If CAA couldn't meet Nolan's needs, he would find solace elsewhere, just as other top-tier talents had done.

Thomas glanced at Martin, noting his familial warmth amidst the cutthroat world of Hollywood. Stability was key, as long as one remained level-headed.

"I heard Nolan's planning to take legal action against CAA," Thomas mentioned, to which Martin confirmed, citing CAA's alleged withholding of Nolan's earnings from the previous year.

Thomas sighed, lamenting CAA's decline from its glory days. The exodus of A-listers like Spielberg, Scorsese, and Leonardo hinted at deeper issues within the agency's management.

Martin pondered for a moment before offering his insight. He believed that CAA's ethos had shifted over the years, with some senior agents forgetting their role as servants to the talent, instead, seeing themselves as the masters.

The sentiment struck a chord with Thomas, reminding him of similar dynamics in past experiences, perhaps in the realm of property management.

As they contemplated the shifting tides of Hollywood, the echoes of past lessons resonated, reminding them that in this ever-evolving landscape, adaptability was paramount.

Thomas reflected, "Indeed, the founders of CAA went to great lengths to secure representation from icons like Sean Connery and Spielberg. They were willing to bend over backward, practically selling their souls. Michael Ovitz practically pleaded with them. And now, here I am, holding their agency contract..."

As the signing concluded and media interviews wrapped up, Nolan, Ari, Emma Thomas, and others made their way to the lounge.

Martin stepped forward, extending his hand to Nolan with a warm smile. "Chris, welcome to WMA," he greeted.

Nolan reciprocated the handshake, his eyes shining with determination. "We'll be fighting side by side soon," he affirmed.

Martin nodded, his expression thoughtful. "Warner Brothers... it's hard to put into words what's better," he mused.

Ari interjected at the opportune moment, joining the conversation. "WMA stands firmly behind you, safeguarding your rightful interests," she reassured Nolan.

Moved by the support, Nolan sighed, "I never imagined we'd come to this point with Warner Bros."

Martin's tone shifted as he addressed the lingering issue. "Our post-production shares from last year are now 40 days overdue," he explained, frustration evident in his voice. "Despite legal notices, Warner Bros. continues to stall, citing delays in international market repayments."

Nolan shook his head in disbelief. "We've waited over 40 days already. We can't wait indefinitely."

While Martin had severed ties with Warner Bros., both he and Nolan were owed post-production shares dating back to 2011, a fact emblematic of broader issues within the industry.

As media attention outside dwindled, the group adjourned upstairs for further discussion. Soon, Martin's lawyer, Hamlin, and Nolan's legal counsel hurried to WMA headquarters.

Faced with persistent delays and empty promises, Nolan and Martin made the unanimous decision to pursue legal action. They were not alone; other industry luminaries with ties to Warner Bros. followed suit.

Warner Bros., once the powerhouse of Hollywood, now found itself embroiled in turmoil following a change in leadership.

In the Chairman's Office of the Warner Building, Kevin Tsujihara addressed his assembled subordinates with a grave expression. "I've been informed by the legal department that we've received notices from a slew of industry heavyweights—Leonardo da Vinci, George Clooney, Daniel Radcliffe, Matt Damon, Christian Bale, Martin Davis, Christopher Nolan, and others. They're demanding payment for overdue royalties and accrued interest."

Jon Berg, President of Warner Pictures, immediately attempted to deflect blame. "Our distribution channels have been slow to repay funds, and unexpected setbacks in several projects have strained our working capital. Without those funds, it's impossible for us to allocate shares as promised."

Daniel, responsible for distribution, bristled with frustration. "Why are we facing delays in payment? Because several films underperformed last year, especially in the North American market. This led to postponements and even withdrawals from international distribution, creating a domino effect!"

"Enough!" Kevin Tsujihara interjected sharply. "Are we here to play the blame game, or to find a solution?"

Turning to Daniel, Jon Berg emphasized the need for unity. "What about our agreement to share responsibility?"

Daniel's tone softened slightly as he continued, "If there are issues with payment collection for recent releases, I'll take full responsibility. But why are we experiencing delays with older films? Previously, there were no issues with timely payments."

Though Warner Bros. encompassed various divisions, Kevin Tsujihara had entrusted Warner Pictures to his brother-in-law, Joe En-Berg, hoping for a swift resolution to the current crisis.

Rarely intervening directly in film affairs, Kevin focused his attention on Jon Berg, expecting an explanation.

Jon Berg remained composed as he explained, "We've encountered unexpected costs during the post-production of 'Jack the Giant Catcher,' necessitating temporary reallocation of funds from older films to cover expenses. Once we start receiving repayments from our channels, we'll rectify the situation."

Daniel fell silent, knowing such practices weren't uncommon within Warner.

Kevin Tsujihara and Daniel found Jon Berg's explanation satisfactory, understanding that such challenges were par for the course in the industry. After all, Warner Bros. maintained its status as a Hollywood powerhouse despite occasional hurdles.

Amidst the flurry of legal notices and impending litigation from celebrities and directors, Kevin Tsujihara remained vigilant, urging his team to expedite resolutions. "We can't afford to delay indefinitely. Let's start by resolving part of the issue," he advised.

Jon Berg, known for his strategic prowess, saw an opportunity amidst the chaos. "Consider the 'Harry Potter and the Deathly Hallows' project," he proposed, locking eyes with Kevin. "The post-production sharing for Daniel Radcliffe, Emma Watson, and Rupert Grint alone amounts to a substantial sum."

Kevin's interest was piqued. "So, it's a profitable venture?" he inquired.

Jon Berg shook his head solemnly. "Unfortunately, 'Harry Potter and the Deathly Hallows' suffered significant losses."

Once, Warner Bros. had indulged the cast of the Harry Potter series, but with the franchise concluded, their once-infinite value had diminished significantly.

Turning to Daniel, Jon Berg continued, "The publicity and distribution expenses must have been substantial."

Daniel, acknowledging the situation, assured, "Rest assured, expenses were proportional to the film's budget, if not higher."

With distribution and promotion primarily handled by Warner Bros., the expenses incurred were deducted before profit sharing.

Jon Berg reminded, "The production budget was $150 million, financed through loans. Don't forget the accrued interest."

Daniel waved off the concern, having already factored it into his calculations. Despite the film's global success, it would result in a loss due to Hollywood's accounting practices.

A film boasting a global box office of over $1.3 billion and topping DVD sales in 2011 would paradoxically register a negative net profit, a common occurrence in the industry.

Exiting the chairman's office, Jon Berg and Daniel, accustomed to their adversarial roles, shared a moment of camaraderie.

Soon, industry professionals would craft a revenue statement for "Harry Potter 9," utilizing Hollywood's accounting methods to proclaim the film a financial failure, shielding Warner Bros. from further financial obligations.